At a September 4 hearing on the Cedar Haven bankruptcy, the Delaware bankruptcy court appointed a Patient Care Ombudsman and entered several orders designed to allow the former county home’s operator, Cedar Haven Acquisition, LLC., to conduct business as usual until the bankruptcy case is resolved.

A resolution of the bankruptcy case could involve the approval of a reorganization plan or a sale of the facility.

As required in most bankruptcies involving long-term care facilities, the court appointed Margaret Barajas of the Commonwealth of Pennsylvania’s Long-Term Care Ombudsman Office to monitor the quality of care being given to Cedar Haven residents and to generally represent their interests. She is required to report regularly to the bankruptcy court.

At the same hearing, the bankruptcy court entered several orders allowing the continuation of Cedar Haven operations. Such orders are common in Chapter 11 bankruptcy cases. They include:

  • Payment of certain pre-bankruptcy fees and taxes
  • Payment of wages, salaries, and benefits
  • Maintaining employee benefits
  • Payments of attorney and professional fees
  • Maintaining insurance coverage
  • Payments to “critical vendors” of certain pre-bankruptcy bills
  • Preventing utilities from discontinuing service

The next bankruptcy court hearing is scheduled for October 15. Cedar Haven Acquisition is seeking permission to hire an auditor, a firm to collect accounts receivable, and an attorney to handle any bankruptcy-related litigation.

Chris Coyle writes primarily on government, the courts, and business. He retired as an attorney at the end of 2018, after concentrating for nearly four decades on civil and criminal litigation and trials. A career highlight was successfully defending a retired Pennsylvania state trooper who was accused,...


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